Explore BrainMass
Share

Sustainable growth rate

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Atlantic Transportation Co. has a payout ratio of 60 percent, debt-equity ratio of 50 percent, return on equity of 16 percent, and an assets-sales ratio of 175 percent.

a. What is its sustainable growth rate?
b. What must its profit margin be in order to achieve its sustainable growth rate?

© BrainMass Inc. brainmass.com September 21, 2018, 1:36 pm ad1c9bdddf - https://brainmass.com/economics/barriers-to-growth/sustainable-growth-rate-54884

Solution Summary

Sustainable growth rate and the profit margin required for achieving sustainable growth rate have been calculated.

$2.19